Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and study possible future liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to ascertain the potential volumes that South Africa needs to establish a viable LNG import market place, together with the enabling infrastructure, and may be facilitated by government-to-authorities relations where needed."
"This initiative concentrates on applying gas for energy generation to supply necessary base load electrical energy and position gas being a critical enabler of re-industrialisation, while also making certain continued supply to the marketplace by unlocking world LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's energy transition and decarbonisation," the joint statement read.
The click here MoU is expected to "explore sourcing gas within South Africa, the Southern African Development Community region, and other parts of the African continent, in addition to evaluating long-term LNG contracting".
"This will support the gas requirements for Eskom’s planned coal power station repowering and conversion to gas in the long term. The parties will also engage other state entities to enable an LNG value chain in South Africa.
"As part more info of its revised gas strategy, Sasol is working on enabling the future supply of LNG to South Africa by collaborating with companies such as Eskom, existing and future customers, suppliers, and infrastructure developers.
"The get more info research findings from the first phase of the Sasol-Eskom collaboration will guide the necessary role players and investors required to offer the best prospects for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.